WABCO Holdings Inc.’s third-quarter 2018 earnings were $1.78 per share, beating the Zacks Consensus Estimate of $1.60. Moreover, the bottom line improved 4.1% from the prior-year quarter figure of $1.71.
On a reported basis, total revenues rose 10.5% to $914.8 million from $827.8 million a year ago. However, revenues lagged the Zacks Consensus Estimate of $934 million. During the quarter under review, global truck and bus production decreased by 8% on a year-over-year basis.
During the reported quarter, gross profit was $275.1 million compared with $249.6 million recorded in third-quarter 2017. Adjusted operating expenses rose to $163.1 million from $136.1 million in the prior-year quarter.
Financial Details
WABCO had cash and cash equivalents of $832.2 million as of Sep 30, 2018, compared with $1.14 billion as of Dec 31, 2017. The company’s long-term debt was $861.7 million as of Sep 30, 2018, marking a decline from $1.02 billion as of Dec 31, 2017.
In third-quarter 2018, WABCO witnessed net cash inflow of $134.4 million from operations compared with $84.1 million a year ago.
Share Buyback Update
During the third quarter, the company bought 740,490 shares for $90.2 million. Between June 2011 and September 2018, it repurchased 20,998,402 shares for $1.8 billion in open market transactions.
In 2018, WABCO aims to repurchase shares worth approximately $300 million, subject to market conditions and regularity approvals.
2018 Outlook
For 2018, WABCO anticipates net sales of approximately $3.85-$3.90 billion compared with $3.85-$3.95 billion stated earlier. The company updated its performance operating margin expectation from 14.3-14.7% to 14.2-14.4%. Performance adjusted earnings per share are expected to be $7.65-$7.85 versus $7.45-$7.75 stated earlier.
Zacks Rank & Key Picks
WABCO currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the auto space are Allison Transmission Holdings, Inc. (ALSN - Free Report) , AB Volvo (VLVLY - Free Report) and Navistar International Corporation . While both Allison Transmission and Volvo sport a Zacks Rank #1 (Strong Buy), Navistar has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Allison Transmission has an expected long-term growth rate of 10%. Over the past six months, shares of the company have surged 15.5%.
Volvo has an expected long-term growth rate of 15%. Over the past two years, shares of the company have risen 36.4%.
Navistar has an expected long-term growth rate of 5%. Over the past two years, shares of the company have risen 50.9%.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
WABCO Holdings Inc.’s third-quarter 2018 earnings were $1.78 per share, beating the Zacks Consensus Estimate of $1.60. Moreover, the bottom line improved 4.1% from the prior-year quarter figure of $1.71.
On a reported basis, total revenues rose 10.5% to $914.8 million from $827.8 million a year ago. However, revenues lagged the Zacks Consensus Estimate of $934 million. During the quarter under review, global truck and bus production decreased by 8% on a year-over-year basis.
During the reported quarter, gross profit was $275.1 million compared with $249.6 million recorded in third-quarter 2017. Adjusted operating expenses rose to $163.1 million from $136.1 million in the prior-year quarter.
Financial Details
WABCO had cash and cash equivalents of $832.2 million as of Sep 30, 2018, compared with $1.14 billion as of Dec 31, 2017. The company’s long-term debt was $861.7 million as of Sep 30, 2018, marking a decline from $1.02 billion as of Dec 31, 2017.
In third-quarter 2018, WABCO witnessed net cash inflow of $134.4 million from operations compared with $84.1 million a year ago.
Share Buyback Update
During the third quarter, the company bought 740,490 shares for $90.2 million. Between June 2011 and September 2018, it repurchased 20,998,402 shares for $1.8 billion in open market transactions.
In 2018, WABCO aims to repurchase shares worth approximately $300 million, subject to market conditions and regularity approvals.
2018 Outlook
For 2018, WABCO anticipates net sales of approximately $3.85-$3.90 billion compared with $3.85-$3.95 billion stated earlier. The company updated its performance operating margin expectation from 14.3-14.7% to 14.2-14.4%. Performance adjusted earnings per share are expected to be $7.65-$7.85 versus $7.45-$7.75 stated earlier.
Zacks Rank & Key Picks
WABCO currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the auto space are Allison Transmission Holdings, Inc. (ALSN - Free Report) , AB Volvo (VLVLY - Free Report) and Navistar International Corporation . While both Allison Transmission and Volvo sport a Zacks Rank #1 (Strong Buy), Navistar has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Allison Transmission has an expected long-term growth rate of 10%. Over the past six months, shares of the company have surged 15.5%.
Volvo has an expected long-term growth rate of 15%. Over the past two years, shares of the company have risen 36.4%.
Navistar has an expected long-term growth rate of 5%. Over the past two years, shares of the company have risen 50.9%.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Get the latest research report on ALSN - FREE
Get the latest research report on VLVLY - FREE